Level Term Life Insurance Guide Discussion

MiM

This is something I've never looked closely at, just being aware that I've got some money going out of my account for two policies of some sort.

Since I took them out I've married and have a new baby. I think it's time to look into this properly but want to know whether I'd lose anything by getting rid of my current policies?

They are...

1.Standard Life Lifetime Protection Plan critical illness protection. Term 19 years from April 02. Initial sum payable on critical illness, £52,000. Monthly premium £13.30.

2. Nationwide Level Term Assurance. Start June 99, term 15 years, £5.88 monthly to June 2014, £15,000 payable on death before that date. Includes serious illness cover to same amount and payment waiver option.

Both were taken out alongside mortgages that are no longer in force.

I'm 45, owe about £35,000 on mortgage, have some savings and shares and no other debts.

Was thinking of looking for some more comprehensive cover for wife and baby - not sure what yet. But is there any reason I should keep the policies I have?

west_is_best

I am looking for some advice regarding our maturing Life policy..

Its to mature end of this month, we got a letter from Pearl yesterday saying that they will not be paying it out, they will be keeping it and reinvesting it... I will be phoning them about this, as this is not going to happen...

Whats bugging me is....
We will get out just over £600 less than what we've paid in.. The reason it says in the letter says like this...

In 2011, the preformance of some of our unit linked funds was affected by a reduction in the value we placed on tax assents held by the fund. The reason this is we reviewed the tax relief that we expect the funds to receive, taking into account market conditions, and as we are unlikely to receive tax relief in the foreseeable future, we have reduced the current value placed on it. This in turn has reduced the unit price.

This change occurred in December 2011 threrefore the current value of the fund takes this change into account. We will continue to review the position on a regular basis..

can anyone tell me, should we have over £600 shortfall to the amount we paid in because of this??

I would like to know ASAP, if someone can help me, as I need to phone them regarding reinvesting our money...

Thank you

Thorpe

MiM wrote: »

This is something I've never looked closely at, just being aware that I've got some money going out of my account for two policies of some sort.

Since I took them out I've married and have a new baby. I think it's time to look into this properly but want to know whether I'd lose anything by getting rid of my current policies?

They are...

1.Standard Life Lifetime Protection Plan critical illness protection. Term 19 years from April 02. Initial sum payable on critical illness, £52,000. Monthly premium £13.30.

2. Nationwide Level Term Assurance. Start June 99, term 15 years, £5.88 monthly to June 2014, £15,000 payable on death before that date. Includes serious illness cover to same amount and payment waiver option.

Both were taken out alongside mortgages that are no longer in force.

I'm 45, owe about £35,000 on mortgage, have some savings and shares and no other debts.

Was thinking of looking for some more comprehensive cover for wife and baby - not sure what yet. But is there any reason I should keep the policies I have?

Of course there a reason to keep them, should something happen to you then they will pay out, your wife will be able to pay off the mortgage and then be able to ensure your child is able to remain in the house you lived in.

You have had the plans along time and you have obviously got older since then so i feel you would struggle to get the same premium for cover, it MAY be easier to take out some extra cover rather than replace it.

Recommend talking to an adviser and getting them to do a full assessment of your needs and get the correct amount of cover to ensure your family have no financial hardship should something happen to you

partsmart

I have a Mortgage Protection Policy with L&G this is decreasing in value until 2018 when it will be worth nothing. It is joint life and is currently valued at £60K. I have just paid off my mortgage should I keep this product as Life Assurance.

dunstonh

partsmart wrote: »

I have a Mortgage Protection Policy with L&G this is decreasing in value until 2018 when it will be worth nothing. It is joint life and is currently valued at £60K. I have just paid off my mortgage should I keep this product as Life Assurance.

do you still need it or have reason to keep it?

partsmart

I do not need it for paying off the mortgage obviously, I have no other life assurance and due to medical reasons would struggle to get an affordable product, in am 59. As it is a decreasing cover I wondered if I would be better to cancel it, it is £40 per month.

dunstonh

partsmart wrote: »

I do not need it for paying off the mortgage obviously, I have no other life assurance and due to medical reasons would struggle to get an affordable product, in am 59. As it is a decreasing cover I wondered if I would be better to cancel it, it is £40 per month.

No-one is going to tell you to cancel or not as we dont know your circumstances. You do. So, do you have a financial need for it or not? (is anyone worse off in the event of your death)

partsmart

I am just wondering when it becomes not worth it ie at present £40 per month for dual covr of £60K is not too bad. But in later years the sum assured will decrease therefore at what point will it become uneconmical.

Thorpe

Partsmart

Personally there is a trend where people cancel decreasing plans in the last 2-3 years due to the low amount of cover provided at the time

Does it provide critical illness?
What would your partner do should something happen to you?
How affordable is £40 a month to you?
Like you mentioned your medical conditions could cause future cover to be declined or too expensive
Is it joint or single

UKkiwigirl

Hi,

I'm in the process of buying a house. When I spoke to the bank last week, I was told I need to consider getting life insurance (it may have been assurance though, I just assumed it was insurance because I didn't know there was a difference). My mortgage is worth £130k. I already have life assurance through my job worth £200k. Do I need separate life assurance to cover my mortgage? Although the mortgage is only in my name, I want to ensure my husband has enough to cover the mortgage if the worst happens.

Thanks, Nikki